Adaptability – Our Prime Directive – SELLING VALUE – Part Eleven

Adaptability – Our Prime Directive

SELLING VALUE

–A Thirteen-Part Series–

Part Eleven

The Value Proposition

IECS = Internal Employee Costs Saved

by
Bob Marshall

November 4^th, 2025

PART ELEVEN

IECS = Internal Employee Costs Saved

Understanding Internal Employee Costs

When a position sits open, the costs go far beyond a missing paycheck. Internal employee costs include:

• Time and resources spent interviewing
• Lost productivity from an unfilled position
• The ripple effect of a bad hire
• Work left unfinished or delayed
• Added stress and burnout among employees covering extra duties

Let’s look at a real-world example of one of the most overlooked hiring expenses.

How Much Does It Really Cost to Hire?

Most business leaders underestimate this number. Industry data suggests that your “value” to the company—your contribution in personal production—is roughly five times your annual salary.

Let’s break that down.

If you earn $83,200 per year (salary plus bonus), your production value equals:

$83,200 × 5 = $416,000 per year

Divide that by 2,080 working hours (52 weeks × 40 hours):

$416,000 ÷ 2,080 = $200 per hour

So, every hour you spend on tasks outside your core function—like hiring—costs the company about $200 in lost productivity.

The Hidden Cost of a “DIY” Hire

Suppose you’re hiring a Sales Manager with a base salary of $50,000 plus bonus. You post an ad and receive 200 resumes. Let’s look at your investment in time:

Before you’ve even met a single candidate, you’ve invested 68 hours, or nearly two full workweeks—worth $13,600 of your time. And that’s before counting the cost of the ad itself.

Now, you interview 5 candidates for 2 hours each. That’s another 10 hours, adding $2,000 more in costs.

Your total?

$15,600—and you haven’t even made a hire yet.

The Recruiter Advantage

Now consider this: my fee for placing that same $50,000 Sales Manager is $15,000.

That’s an immediate savings of $600—and far more importantly, you save nearly 80 hours of your own time. Instead of losing two weeks of productivity, I deliver qualified candidates within 5 to 10 working days.

And not just any candidates.

• Candidates are high-performing professionals: currently working, well-compensated, and open to better opportunities.
• Applicants are often job hoppers, job shoppers, or rejections from elsewhere.

According to the Advertising Institute of America, only 17% of the workforce reads job ads—those are your Applicants. I connect you with the other 83%—the Candidates who aren’t actively looking but are open to the right opportunity.

Which group would you rather hire from?

And One More Thing…

Every candidate I present:

• Accepts the role within your target compensation
• Is fully reference-checked
• Already resides and works in your desired market area

In short, I deliver proven professionals who are ready to contribute from day one.

Think about it.

Coming Up Next:

In Part Twelve, we’ll explore the fourth part of the equation—Recruiter Service Charge (RSC)—and how it strengthens your overall value proposition.

My Best,
Bob

Bob Marshall began his recruiting career over 45 years ago at MR in Reno, NV.  In 1986 he established The Bob Marshall Group, International, where he has trained recruiters throughout the United States and also in the United Kingdom, Malta and Cyprus.  With a dedication to executive recruiting, he continues to offer his proven training systems to individuals, firms, and private corporations both domestic and in select international territories.  To learn more about his activities and descriptions of his products and services, contact him directly @770-898-5550/470-456-0386(cell); bob@themarshallplan.org; or visit his website @ www.TheMarshallPlan.org.

Bob Marshall

President

TBMG, International

247 Bryans Drive, Suite 100

McDonough, GA  30252-2513

770-898-5550

bob@themarshallplan.org

www.TheMarshallPlan.org